The following is a portion of the current assets section of the balance sheets of Avanti’s, Inc., at December 31, 2023 and 2022:

Required:
a. If $9,100 of accounts receivable were written off during 2023, what was the amount of bad debts expense recognized for the year?
b. The December 31, 2023, Allowance account balance includes $1,600 for a past due account that is not likely to be collected. This account has not been written off. If it had been written off, what would have been the effect of the write-off on:

1. Working capital at December 31, 2023?
2. Net income and ROI for the year ended December 31, 2023?
c. What do you suppose was the level of Avanti’s sales in 2023 compared to 2022? Explain your answer.

Transcribed Image Text:

Accounts receivable, less allowance for bad debts of $8,700 and $12,300, respectively 12/31/23 $185,600 12/31/22 $218,700